Legislature(1993 - 1994)

03/25/1993 01:30 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                         March 25, 1993                                        
                            1:30 P.M.                                          
                                                                               
  TAPE HFC 93 - 61, Side 1, #000 - end.                                        
  TAPE HFC 93 - 61, Side 2, #000 - end.                                        
  TAPE HFC 93 - 62, Side 1, #000 - end.                                        
  TAPE HFC 93 - 62, Side 2, #000 - end.                                        
  TAPE HFC 93 - 63, Side 1, #000 - end.                                        
  TAPE HFC 93 - 63, Side 2, #000 - end.                                        
  TAPE HFC 93 - 64, Side 1, #000 - end.                                        
  TAPE HFC 93 - 64, Side 2, #000 - #224.                                       
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Ron Larson called the meeting of the  House Finance                 
  Committee to order at 1:30 P.M.                                              
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson               Representative Brown                           
  Co-Chair MacLean              Representative Foster                          
  Vice-Chair Hanley             Representative Grussendorf                     
  Representative Hoffman        Representative Martin                          
  Representative Navarre        Representative Parnell                         
  Representative Therriault                                                    
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Representative Fran Ulmer; Senator  Suzanne Little; Lloyd G.                 
  Rupp,  Commissioner, Department  of  Corrections; Nico  Bus,                 
  Chief, Financial Services,  Department of Natural Resources;                 
  Cheryl Frasca, Director,  Division of Budget  Review, Office                 
  of  Management  and  Budget, Office  of  the  Governor; Joan                 
  Kasson, Fiscal  Analyst, Legislative Finance  Division; Raga                 
  Elim, Special  Assistant, Department  of Natural  Resources;                 
  Ric  Davidge, Director,  Division  of  Water, Department  of                 
  Natural Resources; Representative Barnes.                                    
                                                                               
  SUMMARY INFORMATION                                                          
  HB 55     An Act making appropriations for the operating and                 
            loan  program expenses of  state government and to                 
            capitalize funds;  and providing for  an effective                 
            date.                                                              
                                                                               
  HB 56     An   Act   making  appropriations   for  operating                 
            expenses for certain programs for  which the costs                 
            are derived  from mandated  formulas or  criteria,                 
            and for expenses for certain leases  and contracts                 
            for state services  and operations; and  providing                 
                                                                               
                                1                                              
                                                                               
                                                                               
            for an effective date.                                             
                                                                               
            Consideration of Amendments  for the Department of                 
            Corrections   and   the   Department  of   Natural                 
            Resources.                                                         
                                                                               
  DEPARTMENT OF CORRECTION - AMENDMENTS                                        
                                                                               
  REPRESENTATIVE RAMONA  BARNES spoke  to CORR  #1.   Co-Chair                 
  Larson MOVED  the amendment.  Representative  Brown OBJECTED                 
  and  requested  that  the  five   parts  of  Section  #4  be                 
  separated.   Co-Chair Larson  MOVED Sections #1,  #2, #3 and                 
  adopted.                                                                     
                                                                               
  Representative Brown  addressed Section  #4 explaining  that                 
  the  Department of  Corrections  (DOC)  would be  critically                 
  hindered by its passage.  Representative Barnes provided the                 
  Committee with a handout, [Attachment  #1], which listed the                 
  separate revised programs stating that  it would establish a                 
  system  in  which  to  control  the  Department's  spending.                 
  Representative Brown WITHDREW THE OBJECTION.                                 
                                                                               
  Representative  Navarre  OBJECTED.     He  stated  that  the                 
  separate  appropriations  would remove  any  flexibility the                 
  Department might have.  He pointed out that  the Legislature                 
  should  manage  the   budget  rather  than   the  individual                 
  departments.  Representative Barnes  replied the Legislature                 
  should   assume   its   constitutional   responsibility   in                 
  determining where the money is spent.                                        
                                                                               
  Representative  Navarre  emphasized  the  responsibility  of                 
  individual agencies is to have  authority over their capital                 
  to move funds around, given that they can justify it through                 
  their  record  keeping.    He   added,  Wildwood  should  be                 
  considered one of the institutions which remains open, based                 
  on cost effective options.                                                   
                                                                               
  LLOYD   RUPP,   COMMISSIONER,  DEPARTMENT   OF  CORRECTIONS,                 
  explained that  the Department  of Corrections  has provided                 
  the  Legislature  with  a  "true"   budget  needed  by  that                 
  Department for management flexibility and  noted that he did                 
  not support Representative  Barnes amendments.  In  order to                 
  administer the Department on a sound fiscal base, funds need                 
  to be  given  more  flexibility  in  order  to  manage  with                 
  credibility.  Intermediate sanctions require a policy driven                 
  system with trained  persons.  The proposed  budget does not                 
  provide funds for  this training which  is the basis of  any                 
  correctional system in  the country.  Representative  Barnes                 
  disagreed.  She  pointed out  there is an  extra $1  million                 
  dollars placed in the FY 93 budget for DOC.                                  
                                                                               
                                                                               
                                2                                              
                                                                               
                                                                               
  (Tape Change, HFC 93-61, Side 2).                                            
                                                                               
  REPRESENTATIVE  FRAN ULMER  provided  the  Committee with  a                 
  handout.    [Attachment #2].    She urged  the  Committee to                 
  reject  Section #4 of CORR #1, pointing  out that at no time                 
  did  the  Department   of  Corrections  subcommittee  debate                 
  whether or not the amount allocated to each center should be                 
  frozen.  There has not been an in depth hearing to determine                 
  that   the   administrators   should   be   locked  into   a                 
  predetermined amount.                                                        
                                                                               
  Representative  Ulmer  agreed  that the  Legislature  should                 
  protect it's appropriation power.  Policy should be set  for                 
  appropriation although, it is totally  inappropriate for the                 
  Legislature  to  manage  State government.    She  urged the                 
  Committee not to accept the proposed amendment.                              
                                                                               
  Co-Chair Larson asked the Commissioner if making allocations                 
  rather  than  appropriations  to  the  DOC budget  would  be                 
  acceptable, and then making those allocations subject to LBA                 
  audits.   Commissioner Rupp  asked how  he would  handle the                 
  immediate  costs  of  moving  prisoners without  immediately                 
  addressed by  LBA.   Co-Chair Larson  suggested those  costs                 
  could be covered through retroactive requests.                               
                                                                               
  Representative Hoffman  recommended dividing  Section #4  of                 
  CORR  #1.  Representative  Barnes agreed to  the division of                 
  the  amendment,  although  noted her  concern  with  how the                 
  budget was  written.   Commissioner Rupp supported  dividing                 
  the allocation  reductions,  which would  then  provide  the                 
  Department some flexibility.                                                 
  Representative Hoffman MOVED  to amend  Section #4, CORR  #1                 
  which would allocate  $1.2 million  dollars among the  eight                 
  institutions  on  a  proportionate  basis  as  the  original                 
  allocation.  There being NO OBJECTION, it was so ordered.                    
                                                                               
  Representative Brown asked how many appropriations were made                 
  to the Department in FY 93.                                                  
                                                                               
  JOAN KASSON, FISCAL ANALYSTS,  LEGISLATIVE FINANCE DIVISION,                 
  replied  there   were  two   appropriations  which   covered                 
  administrative support and  community health care.   The new                 
  proposal  requires  an  appropriation   for  each  facility.                 
  Representative Barnes stressed that she requested  that each                 
  facility be appropriated for  individually.  Co-Chair Larson                 
  MOVED  a  language change  in  Section  4, Part  2,  to read                 
  "proportionately"   based   rather   than  an   "unallocated                 
  reduction".                                                                  
                                                                               
  Representative Navarre asked  to divide  that question.   He                 
  pointed out there is  no objection to the dividing  the $1.2                 
  million  dollars  allocated to  institutions  on a  pro rata                 
                                                                               
                                3                                              
                                                                               
                                                                               
  basis.  The second  part of the question would  clarify that                 
  all  institutions be  included  in separate  appropriations.                 
  Representative  Brown  pointed  out  that  if  this  section                 
  failed, there would be six appropriations within DOC.                        
                                                                               
  (Tape Change HFC 93-62, Side 1).                                             
                                                                               
  Representative Navarre MOVED to divide  Section #4, CORR #1.                 
  There being NO OBJECTION, it was divided.  The first part of                 
  Section  #4  was agreed  upon  previously.   Co-Chair Larson                 
  asked if Part #2 should be a separate appropriation for each                 
  of   the  eight  institutions   or  if  it   should  be  one                 
  appropriation for all  twelve institutions.   Representative                 
  Barnes  stated there  would  be  a  separate  BRU  for  each                 
  institution plus  additional BRU's for activities within the                 
  Department.                                                                  
                                                                               
  Ms.  Kasson  explained  the way  in  which  the subcommittee                 
  report  was  adopted,   each  item   would  be  a   separate                 
  appropriation except for:                                                    
                                                                               
            Administrative Services                                            
            Correctional Industries                                            
            Institutions                                                       
            Community Corrections                                              
                                                                               
  Representative Ulmer clarified  that in  the proposed FY  94                 
  DOC  budget,  there are  thirteen appropriations  before the                 
  proposed amendment.  She pointed  out that the University of                 
  Alaska  budget has one  appropriation.  Representative Ulmer                 
  emphasized this is not fair.                                                 
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Hanley,  Martin,   Parnell,  Therriault,                 
                      Larson, MacLean, Foster.                                 
                                                                               
       OPPOSED:       Brown, Navarre, Hoffman.                                 
                                                                               
  Representative Grussendorf was not present for the vote.                     
                                                                               
  The MOTION PASSED, (7-3).                                                    
                                                                               
  Representative Parnell  WITHDREW CORR  #2.   There being  NO                 
  OBJECTION, it was so ordered.                                                
                                                                               
  Co-Chair  Larson  MOVED  CORR  #3.    Representative  Barnes                 
  explained the amendment would change  the funding source for                 
  mental health services in community residential centers from                 
  inter-agency receipts  to direct  funding.   There being  NO                 
  OBJECTION, it was so ordered.                                                
                                                                               
                                                                               
                                4                                              
                                                                               
                                                                               
  Representative Brown  MOVED CORR  #4.  Representative  Ulmer                 
  explained the  amendment  would bring  the Southeast  Region                 
  Probation  Office   back  up  to  the   Governor's  request.                 
  Probation  officers  have  been  significantly  understaffed                 
  during the past few years.                                                   
  Representative Barnes noted her opposition to the amendment.                 
  Commissioner Rupp replied, current case load is 50% over the                 
  capacity of the Department.  Co-Chair Larson OBJECTED.                       
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Foster,  Hanley,   Parnell,  Therriault,                 
                      MacLean, Larson.                                         
                                                                               
       OPPOSED:       Grussendorf, Hoffman, Navarre, Brown.                    
                                                                               
  Representative Martin was not present for the vote.                          
                                                                               
  The MOTION FAILED, (4-6).                                                    
                                                                               
  Representative Brown MOVED  CORR #5.   Representative  Ulmer                 
  explained  that  the  Correctional  Industries  unit  cannot                 
  absorb  such  a  large vacancy  factor.    Not  funding this                 
  amendment will  mean ten  layoffs during  FY 94.   All  non-                 
  personal  expenses  of   this  unit  are  met   through  the                 
  Correctional Industries Product Fund.  Funding the personnel                 
  costs  would  be  a  small  price  to pay  for  the  return.                 
  Representative Brown pointed out that this is the Governor's                 
  request for an  increase, resulting from lawsuit  demands to                 
  address  educational  opportunities  in our  current  prison                 
  system.   Representative Barnes  objected.   Co-Chair Larson                 
  OBJECTED.                                                                    
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Grussendorf, Hoffman, Navarre, Brown.                    
                                                                               
       OPPOSED:       Hanley,  Parnell,   Therriault,  Foster,                 
                      Larson, MacLean.                                         
                                                                               
  Representative Martin was not present for the vote.                          
                                                                               
  The MOTION FAILED, (4-6).                                                    
                                                                               
  Representative  Brown  WITHDREW  CORR #6.    There  being NO                 
  OBJECTION, it was so ordered.                                                
                                                                               
  Representative   Brown  MOVED   CORR  #7.     Representative                 
  Therriault  OBJECTED.    Representative   Brown  stated  the                 
  amendment  would  allow  DOC to  function  adequately adding                 
  given that  they have  been hit hard  in the  past.   If the                 
  Department is to be  expected to improve in  management, the                 
                                                                               
                                5                                              
                                                                               
                                                                               
  Division must be adequately  staffed.  Representative  Ulmer                 
  elaborated  that  given   the  proposed  cuts  to   DOC  the                 
  Department will be required to do much more paper work, time                 
  and  energy.   She  thought it  was  criminal to  reduce the                 
  administrative staff at  the same  time as severely  cutting                 
  the   Department.      Representative   Grussendorf   echoed                 
  Representative Ulmer's concern.  Commissioner Rupp concurred                 
  that the Department needs more adequate staffing.                            
                                                                               
  (Tape Change HFC 93-62, Side 2).                                             
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Hoffman, Navarre, Brown, Grussendorf.                    
                                                                               
       OPPOSED:       Martin,  Parnell,  Therriault,   Foster,                 
  MacLean,                 Larson.                                             
                                                                               
  Representative Hanley was not present for the vote.                          
                                                                               
  The MOTION FAILED, (4-6).                                                    
                                                                               
  Representative  Brown MOVED CORR  #8.   Representative Ulmer                 
  stated the amendment would  restore the Correctional Academy                 
  to the level of  funding requested by the Governor  and will                 
  allow   the  Department   to   comply   with  the   training                 
  requirements of the  Alaska Police Standards  and Department                 
  regulations.    Commissioner Rupp  commented, the  budget is                 
  inadequate to properly train  the officers.   Representative                 
  Barnes  was  willing  to  reconsider  adding  $100  thousand                 
  dollars above FY 93 funding.  Representative Brown MOVED  TO                 
  AMEND CORR #8 to  have a total restoration of  $100 thousand                 
  dollars.  Representative Navarre OBJECTED.                                   
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Hoffman,  Martin,  Navarre,  Therriault,                 
                      Brown, Foster, Larson.                                   
                                                                               
       OPPOSED:       Navarre, Grussendorf, MacLean.                           
                                                                               
  Representative Hanley was not present for the vote.                          
                                                                               
  The MOTION PASSED, (7-3).                                                    
                                                                               
  There was NO OBJECTION, to the amended amendment CORR #8, it                 
  was so ordered.                                                              
                                                                               
  Representative Brown MOVED  CORR #9.   Representative  Ulmer                 
  stated that if the  one position in the Department  assigned                 
  to deal with women's needs is  eliminated, the court and the                 
  inmates will construe that as a  sign that the Department is                 
                                                                               
                                6                                              
                                                                               
                                                                               
  going  back  on  its  commitment  to resolve  the  problems.                 
  Representative Brown  pointed out  that the  State is  under                 
  obligation  under the  Cleary Lawsuit  to equalize  programs                 
  available for women.   Representative Barnes noted  that she                 
  opposed the amendment.  Co-Chair MacLean OBJECTED.                           
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Navarre, Brown, Grussendorf, Hoffman.                    
                                                                               
       OPPOSED:       Parnell,  Therriault,   Foster,  Hanley,                 
                      MacLean, Larson.                                         
                                                                               
  Representative Martin was not present for the vote.                          
                                                                               
  The MOTION FAILED, (4-6).                                                    
                                                                               
  Representative Navarre WITHDREW  CORR #10.   There being  NO                 
  OBJECTION, it was so ordered.                                                
                                                                               
  Representative Navarre MOVED CORR #11.  Representative Ulmer                 
  pointed out that the Department of Corrections downsized the                 
  Wildwood  sentenced  facility from  204  to 50  inmates last                 
  year.  Due  to severe  overcrowding conditions in  remaining                 
  institutions,  they were  forced  to begin  reopening closed                 
  beds and plan to be back up  to 204 as soon as staffing  was                 
  available.  The city of Appleton,  Minnesota built a 420 bed                 
  facility  in  1992  in hopes  of  attracting  prisoners from                 
  overcrowded facilities in  other states  in order to  create                 
  jobs  in  Minnesota.   The  facility  is still  empty.   The                 
  proposed budget will  close the  Wildwood facility and  will                 
  send the 204 prisoners to Minnesota.  Representative Parnell                 
  OBJECTED.                                                                    
                                                                               
  (Tape Change, HFC 93-63, Side 1).                                            
                                                                               
  Representative Navarre emphasized  that the proposed  budget                 
  would take economic  activity out of  the State and give  it                 
  elsewhere.                                                                   
                                                                               
  Commissioner  Rupp   commented  the   Department  has   been                 
  investigating the possibility  of sending  prisoners out  of                 
  State.   Currently, there  are 80  prisoners living  out-of-                 
  state.    Representative  Barnes  stated  that Wildwood  was                 
  downsized for extensive  renovation needs and she  felt that                 
  it  would not  be  in the  interest of  the State  to pursue                 
  upsizing Wildwood.   [Attachment  #3].   Discussion followed                 
  between  Representative  Barnes  and Representative  Navarre                 
  regarding keeping the prison at Wildwood open versus sending                 
  them to Appleton, Minnesota.  Representative Navarre did not                 
  believe that  Appleton would  be able  to house  the Alaskan                 
  prisoners for $45/day.                                                       
                                                                               
                                7                                              
                                                                               
                                                                               
  Commissioner Rupp  clarified that  Wildwood and  the out-of-                 
  state  shipment are  two separate issues.   The  master plan                 
  developed by the State over the  past two years explains the                 
  need  for 500 new  beds in Alaska  by 1996.   Wildwood is an                 
  essential  area  needed by  the  State to  meet correctional                 
  needs.    Representative  Ulmer pointed  out  that  with the                 
  proposed changes,  the  State will  be  buying a  "bunch  of                 
  lawsuits".  [Attachment #4].                                                 
                                                                               
  Representative  Brown  recommended  transferring money  from                 
  out-of-state contractual into  Wildwood in order to  keep it                 
  open.  She added,  the budget structure adopted will  hinder                 
  the Department's ability to work prison management and avoid                 
  building  a  new  prison.    Representative Brown  MOVED  to                 
  transfer $3  million dollars  from out-of-state  contractual                 
  into  Wildwood.   The  amended  cost  of CORR  #11  would be                 
  $1,970.8 million dollars.                                                    
                                                                               
  (Tape Change, HFC 93-63, Side 2).                                            
                                                                               
  Representative Barnes stated her opposition to  the proposed                 
  amendment.   Representative  Navarre provided  the Committee                 
  with a memo from  Representative Ulmer to the  HFC Co-Chairs                 
  regarding the  Wildwood Correctional  Center dated  3/21/93.                 
  [Attachment #5].                                                             
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Navarre, Brown, Grussendorf, Hoffman.                    
                                                                               
       OPPOSED:       Parnell,  Therriault,   Hanley,  Martin,                 
                      Larson, MacLean.                                         
                                                                               
  Representative Foster was not present for the vote.                          
                                                                               
  The MOTION FAILED, (4-6).                                                    
                                                                               
  A roll call was taken on the MOTION to adopt CORR #11.                       
                                                                               
       IN FAVOR:      Brown, Grussendorf, Hoffman, Navarre.                    
                                                                               
       OPPOSED:       Parnell,  Therriault,   Hanley,  Martin,                 
                      MacLean, Larson.                                         
                                                                               
  Representative Foster was not present for the vote.                          
                                                                               
  The MOTION FAILED, (4-6).                                                    
                                                                               
  Representative Navarre WITHDREW  CORR #12.   There being  NO                 
  OBJECTION, it was so ordered.  [Attachment #6].                              
                                                                               
                                8                                              
                                                                               
                                                                               
  Representative Navarre  asked for notice  of reconsideration                 
  of all the amendments which failed the DOC budget.                           
                                                                               
  DEPARTMENT OF NATURAL RESOURCES                                              
                                                                               
  Co-Chair Larson introduced  DNR #1 which would  provide $100                 
  thousand  dollars  for  nursery  operations.   He  asked  to                 
  withdraw the second and third section of the amendment for a                 
  total  of  $100  thousand  dollars  and requested  that  the                 
  amendment be HELD open for further investigative work.                       
                                                                               
  Representative  Navarre  MOVED   DNR  #2.     Representative                 
  Therriault OBJECTED.  Representative Navarre pointed out the                 
  Office  was traditionally  funded  by interagency  receipts.                 
  The  funds   were   switched  to   general   funds   without                 
  corresponding general fund reductions  to the agency budgets                 
  which had been the original source of funding.  The proposal                 
  would return the budget to the prior year format.                            
                                                                               
  NICO BUS, CHIEF,  FINANCIAL SERVICES, DEPARTMENT OF  NATURAL                 
  RESOURCES, noted that the DNR  Public Information Center was                 
  created  in  February,  1992,  there  was funding  in  three                 
  different divisions.   In FY 93, the  Department proposed to                 
  have the function funded as it was a very important function                 
  in processing permits.  He stated  that it was the intention                 
  of the Department to fund it through program receipts.                       
                                                                               
  Representative Therriault pointed out that the  Commissioner                 
  of   DNR   recommended  that   DNR   #2  not   be  approved.                 
  Representative Navarre WITHDREW THE MOTION.   There being NO                 
  OBJECTION, it was so ordered.                                                
                                                                               
  Representative Brown  MOVED DNR  #3 stating  the move  would                 
  restore a  pass-through grant  to Challenge  Alaska who  had                 
  received the  grant since  1985.  Representative  Therriault                 
  stated  that  the  subcommittee   recommended  deleting  the                 
  request stating  it was  not justified.   He  encouraged the                 
  Committee   to   fund   it  through   discretionary   funds.                 
  Representative Hanley requested that DNR #3 be HELD.   There                 
  being NO OBJECTION, it was so ordered.                                       
                                                                               
  Representative  Brown  MOVED  DNR  #4  and  asked  that  the                 
  amendment  be  restored  to  CED  #5.     The  Oil  and  Gas                 
  Conservation Commission performs critical functions for that                 
  program.   It is  important that  professional expertise  be                 
  maintained within the agency so that it can fully comprehend                 
  and understand what the oil industry is doing.                               
                                                                               
  Representative  Hanley  recommended   when  switches   occur                 
  between the departments, it would  be essential to have both                 
  departments present to  testify.   He asked that  DNR #4  be                 
                                                                               
                                9                                              
                                                                               
                                                                               
  HELD open.  There being NO OBJECTION, it was so ordered.                     
                                                                               
  Representative  Brown  stated  that  DNR  #5  would  have  a                 
  corresponding  amendment  to CED  #4  and would  address the                 
  information  resource management  project.   She offered  to                 
  HOLD DNR #5 until DCED was  present to testify.  There being                 
  NO OBJECTION, it was so ordered.                                             
                                                                               
  (Tape Change, HFC 93-64, Side 1).                                            
                                                                               
  Representative Brown MOVED  DNR #6  which would restore  the                 
  mining    reclamation    program    for    private    lands.                 
  Representative Therriault OBJECTED.   Representative Parnell                 
  MOVED TO AMEND DNR  #6 request to $40 thousand  general fund                 
  dollars.  Representative Larson OBJECTED.                                    
                                                                               
  A roll call was taken on the amended MOTION.                                 
                                                                               
       IN FAVOR:      Therriault, Brown, Grussendorf,  Hanley,                 
                      Hoffman, Navarre, Parnell, MacLean.                      
                                                                               
       OPPOSED:       Martin, Larson.                                          
                                                                               
  Representative Foster was not present for the vote.                          
                                                                               
  The MOTION PASSED, (8-2).                                                    
                                                                               
  Representative Brown  MOVED DNR  #7 to  restore funding  for                 
  Alaska Hydrological Survey Section,  dam safety, Water  Data                 
  Collection  program,  and   Alaska  Water  Resources  Board.                 
  Representative  Therriault  OBJECTED  stating  that the  dam                 
  safety would  not be  impacted by  the decrement.   Mr.  Bus                 
  stated the impact  of the reduction would  affect the Alaska                 
  Water    Resources   Board   and   would   come   from   the                 
  hydroelectrical  survey  which provides  data  on  many very                 
  important  functions.    Dam  safety  is  not  part  of  the                 
  reduction.                                                                   
                                                                               
  RIC  DAVIDGE, DIRECTOR,  DIVISION  OF WATER,  DEPARTMENT  OF                 
  NATURAL RESOURCES, stated  that dam  safety consists of  one                 
  engineer  which  will   not  be  reduced,   although  eleven                 
  scientist would be eliminated.                                               
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Brown, Grussendorf, Navarre.                             
                                                                               
       OPPOSED:       Hanley,   Hoffman,    Martin,   Parnell,                 
                      Therriault, Larson, MacLean.                             
                                                                               
  Representative Foster was not present for the vote.                          
                                                                               
                                                                               
                               10                                              
                                                                               
                                                                               
  The MOTION FAILED, (3-10).                                                   
                                                                               
  Representative Therriault  MOVED DNR #8 which  would provide                 
  $75 thousand dollars  for State Fair allocations.   Co-Chair                 
  MacLean inquired the previous amount allocated to individual                 
  areas  for  State  fairs.    DNR  #8 was  HELD  for  further                 
  consideration.                                                               
                                                                               
  Representative Navarre MOVED DNR #9 which would restore cuts                 
  to   the   Agricultural   Development   for   State   Fairs.                 
  Representative  Martin  OBJECTED.    Representative  Navarre                 
  noted the  requested amendment would provide  the Governor's                 
  recommended funding.                                                         
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Grussendorf,  Hoffman,  Navarre,  Brown,                 
                      MacLean.                                                 
                                                                               
       OPPOSED:       Hanley,  Martin,   Parnell,  Therriault,                 
                      Larson.                                                  
                                                                               
  Representative Foster was not present for the vote.                          
                                                                               
  The MOTION FAILED, (5-5).                                                    
                                                                               
  Representative Navarre MOVED DNR #10 for Representative John                 
  Davies.                                                                      
                                                                               
  RAGA  ELIM, SPECIAL ASSISTANT,  OFFICE OF  THE COMMISSIONER,                 
  DEPARTMENT OF NATURAL  RESOURCES, pointed  out that DNR  #10                 
  would provide important funding  in order to make good  land                 
  management decisions.   Currently,  there are  resources not                 
  being   developed   resulting    from   lack   of    access.                 
  Representative Therriault OBJECTED.                                          
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Grussendorf, Navarre, Brown.                             
                                                                               
       OPPOSED:       Hanley,   Hoffman,    Martin,   Parnell,                 
                      Therriault, Larson, MacLean.                             
                                                                               
  Representative Foster was not present for the vote.                          
                                                                               
  The MOTION FAILED, (3-7).                                                    
                                                                               
  Representative  Brown  asked  to HOLD  DNR  #11  which would                 
  restore  funding  for   oil  and  gas  lease   programs  for                 
  development.  There being NO OBJECTION, it was so ordered.                   
                                                                               
  Representative Brown MOVED DNR #12 would deny the Governor's                 
                                                                               
                               11                                              
                                                                               
                                                                               
  FY  94 decrement to the  assertion of RS 2477 right-of-ways.                 
  Representative  Therriault OBJECTED.   Mr Bus  explained the                 
  confusion regarding the  reduction.  The reduction  of $97.4                 
  was for the  standards for  right-a-way for individuals  and                 
  not for the federal  right-a-ways.  This was a  reduction to                 
  the Division  of Land.   Representative  Brown WITHDREW  DNR                 
                                                                               
  Representative  Navarre MOVED DNR  #13, $50 thousand dollars                 
  ARLF to start up a program  to develop and market virus-free                 
  potatoes.  Co-Chair  Larson pointed out that  the ARLF would                 
  not be an appropriate  funding source for the request.   DNR                 
                                                                               
  Representative Brown MOVED  DNR #14  which would delete  the                 
  5.3% increment of $81.6 thousand dollars to the Agricultural                 
  Development   component  in   the   Department  of   Natural                 
  Resources.  The purpose of the  amendment would be to delete                 
  the remaining increment and maintain the component at the FY                 
  93  funding  level.   Mr. Bus  noted  the importance  of the                 
  funding increment.                                                           
                                                                               
  (Tape Change, HFC 93-64, Side 2).                                            
                                                                               
  Representative  Therriault  OBJECTED.   Representative Brown                 
  pointed  out  that  there  is  an additional  $100  thousand                 
  dollars included  in the  capital budget  to accomplish  the                 
  same concern.                                                                
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Navarre, Brown.                                          
                                                                               
       OPPOSED:       Hanley,   Hoffman,   Martin,    Parnell,                 
                      Therriault,     Foster,     Grussendorf,                 
                      MacLean, Larson.                                         
                                                                               
  The MOTION FAILED, (2-9).                                                    
                                                                               
  Representative  Brown  MOVED  DNR  -  A  -  Intent  Language                 
  allowing  the  Department  of  Natural  Resources  to  fully                 
  implement  the  Mining   Reclamation  Act.    Representative                 
  Therriault stated that the intent was offered when there was                 
  no program receipt authority.  Representative Brown WITHDREW                 
  THE MOTION.  There being NO OBJECTION, it was so ordered.                    
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 6:40 P.M.                                           
                                                                               
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                                                                               
                               12                                              
                                                                               
                                                                               
                         March 25, 1993                                        
                            1:30 P.M.                                          
                                                                               
  TAPE HFC 93 - 61, Side 1, #000 - end.                                        
  TAPE HFC 93 - 61, Side 2, #000 - end.                                        
  TAPE HFC 93 - 62, Side 1, #000 - end.                                        
  TAPE HFC 93 - 62, Side 2, #000 - end.                                        
  TAPE HFC 93 - 63, Side 1, #000 - end.                                        
  TAPE HFC 93 - 63, Side 2, #000 - end.                                        
  TAPE HFC 93 - 64, Side 1, #000 - end.                                        
  TAPE HFC 93 - 64, Side 2, #000 - #224.                                       
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Ron Larson called the  meeting of the House Finance                 
  Committee to order at 1:30 P.M.                                              
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson               Representative Brown                           
  Co-Chair MacLean              Representative Foster                          
  Vice-Chair Hanley             Representative Grussendorf                     
  Representative Hoffman        Representative Martin                          
  Representative Navarre        Representative Parnell                         
  Representative Therriault                                                    
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Representative Fran  Ulmer; Senator Suzanne Little; Lloyd G.                 
  Rupp,  Commissioner, Department  of  Corrections; Nico  Bus,                 
  Chief, Financial Services, Department  of Natural Resources;                 
  Cheryl Frasca,  Director, Division of  Budget Review, Office                 
  of  Management  and  Budget, Office  of  the  Governor; Joan                 
  Kasson, Fiscal Analyst,  Legislative Finance Division;  Raga                 
  Elim, Special  Assistant, Department  of Natural  Resources;                 
  Ric  Davidge,  Director,  Division of  Water,  Department of                 
  Natural Resources; Representative Barnes.                                    
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
  HB 55     An Act making appropriations for the operating and                 
            loan program expenses  of state government and  to                 
            capitalize funds; and  providing for an  effective                 
            date.                                                              
                                                                               
  HB 56     An   Act   making  appropriations   for  operating                 
            expenses for certain programs  for which the costs                 
            are  derived from  mandated formulas  or criteria,                 
            and for expenses for certain  leases and contracts                 
            for state  services and operations;  and providing                 
            for an effective date.                                             
                                                                               
                                                                               
                               13                                              
                                                                               
                                                                               
            Consideration of Amendments for  the Department of                 
            Corrections   and   the   Department  of   Natural                 
            Resources.                                                         
                                                                               
  DEPARTMENT OF CORRECTION - AMENDMENTS                                        
                                                                               
  REPRESENTATIVE RAMONA  BARNES spoke  to CORR  #1.   Co-Chair                 
  Larson MOVED the amendment.   Representative Brown  OBJECTED                 
  and   requested  that  the  five  parts  of  Section  #4  be                 
  separated.  Co-Chair  Larson MOVED Sections  #1, #2, #3  and                 
  adopted.                                                                     
                                                                               
  Representative Brown  addressed Section  #4 explaining  that                 
  the  Department  of  Corrections (DOC)  would  be critically                 
  hindered by its passage.  Representative Barnes provided the                 
  Committee with a handout, [Attachment  #1], which listed the                 
  separate revised programs stating that  it would establish a                 
  system  in  which  to  control  the  Department's  spending.                 
  Representative Brown WITHDREW THE OBJECTION.                                 
                                                                               
  Representative  Navarre   OBJECTED.    He  stated  that  the                 
  separate  appropriations would  remove  any flexibility  the                 
  Department might have.  He  pointed out that the Legislature                 
  should  manage   the  budget  rather   than  the  individual                 
  departments.  Representative Barnes replied the  Legislature                 
  should   assume   its   constitutional   responsibility   in                 
  determining where the money is spent.                                        
                                                                               
  Representative  Navarre  emphasized  the  responsibility  of                 
  individual agencies is to have  authority over their capital                 
  to move funds around, given that they can justify it through                 
  their  record  keeping.    He   added,  Wildwood  should  be                 
  considered one of the institutions which remains open, based                 
  on cost effective options.                                                   
                                                                               
  LLOYD   RUPP,   COMMISSIONER,  DEPARTMENT   OF  CORRECTIONS,                 
  explained that  the Department  of Corrections  has provided                 
  the  Legislature  with  a  "true"   budget  needed  by  that                 
  Department for management flexibility and  noted that he did                 
  not support Representative  Barnes amendments.  In  order to                 
  administer the Department on a sound fiscal base, funds need                 
  to  be  given  more  flexibility  in order  to  manage  with                 
  credibility.  Intermediate sanctions require a policy driven                 
  system with trained  persons.  The proposed budget  does not                 
  provide funds for  this training which  is the basis of  any                 
  correctional system  in the country.   Representative Barnes                 
  disagreed.  She  pointed out  there is an  extra $1  million                 
  dollars placed in the FY 93 budget for DOC.                                  
                                                                               
  (Tape Change, HFC 93-61, Side 2).                                            
                                                                               
                                                                               
                               14                                              
                                                                               
                                                                               
  REPRESENTATIVE  FRAN  ULMER  provided the  Committee  with a                 
  handout.   [Attachment  #2].   She  urged  the Committee  to                 
  reject Section #4  of CORR #1, pointing out  that at no time                 
  did  the  Department  of   Corrections  subcommittee  debate                 
  whether or not the amount allocated to each center should be                 
  frozen.  There has not been an in depth hearing to determine                 
  that   the   administrators   should   be  locked   into   a                 
  predetermined amount.                                                        
                                                                               
  Representative  Ulmer  agreed  that  the Legislature  should                 
  protect it's appropriation power.   Policy should be set for                 
  appropriation although, it is  totally inappropriate for the                 
  Legislature  to  manage  State government.    She  urged the                 
  Committee not to accept the proposed amendment.                              
                                                                               
  Co-Chair Larson asked the Commissioner if making allocations                 
  rather  than  appropriations  to  the  DOC budget  would  be                 
  acceptable, and then making those allocations subject to LBA                 
  audits.   Commissioner Rupp  asked how  he would handle  the                 
  immediate costs  of  moving  prisoners  without  immediately                 
  addressed by  LBA.   Co-Chair Larson  suggested those  costs                 
  could be covered through retroactive requests.                               
                                                                               
  Representative  Hoffman recommended  dividing Section  #4 of                 
  CORR #1.   Representative Barnes agreed  to the division  of                 
  the  amendment,  although  noted her  concern  with  how the                 
  budget  was written.   Commissioner Rupp  supported dividing                 
  the  allocation  reductions, which  would  then  provide the                 
  Department some flexibility.                                                 
  Representative Hoffman MOVED  to amend  Section #4, CORR  #1                 
  which would allocate  $1.2 million  dollars among the  eight                 
  institutions  on  a  proportionate  basis  as  the  original                 
  allocation.  There being NO OBJECTION, it was so ordered.                    
                                                                               
  Representative Brown asked how many appropriations were made                 
  to the Department in FY 93.                                                  
                                                                               
  JOAN KASSON, FISCAL ANALYSTS, LEGISLATIVE FINANCE  DIVISION,                 
  replied   there  were   two  appropriations   which  covered                 
  administrative support and  community health care.   The new                 
  proposal  requires  an  appropriation  for  each   facility.                 
  Representative Barnes stressed that she  requested that each                 
  facility be  appropriated for individually.  Co-Chair Larson                 
  MOVED  a  language change  in  Section  4, Part  2,  to read                 
  "proportionately"   based   rather   than  an   "unallocated                 
  reduction".                                                                  
                                                                               
  Representative Navarre asked  to divide  that question.   He                 
  pointed out there is  no objection to the dividing  the $1.2                 
  million  dollars  allocated to  institutions  on a  pro rata                 
  basis.  The second  part of the question would  clarify that                 
  all  institutions  be included  in  separate appropriations.                 
                                                                               
                               15                                              
                                                                               
                                                                               
  Representative  Brown  pointed  out  that  if  this  section                 
  failed, there would be six appropriations within DOC.                        
                                                                               
  (Tape Change HFC 93-62, Side 1).                                             
                                                                               
  Representative Navarre MOVED to divide  Section #4, CORR #1.                 
  There being NO OBJECTION, it was divided.  The first part of                 
  Section  #4  was agreed  upon  previously.   Co-Chair Larson                 
  asked if Part #2 should be a separate appropriation for each                 
  of  the  eight   institutions  or  if   it  should  be   one                 
  appropriation for  all twelve institutions.   Representative                 
  Barnes  stated  there  would  be  a  separate BRU  for  each                 
  institution  plus additional BRU's for activities within the                 
  Department.                                                                  
                                                                               
  Ms.  Kasson  explained  the way  in  which  the subcommittee                 
  report  was  adopted,   each  item   would  be  a   separate                 
  appropriation except for:                                                    
                                                                               
            Administrative Services                                            
            Correctional Industries                                            
            Institutions                                                       
            Community Corrections                                              
                                                                               
  Representative Ulmer clarified  that in  the proposed FY  94                 
  DOC  budget, there  are thirteen  appropriations before  the                 
  proposed  amendment.  She pointed out that the University of                 
  Alaska budget has  one appropriation.  Representative  Ulmer                 
  emphasized this is not fair.                                                 
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Hanley,  Martin,   Parnell,  Therriault,                 
                      Larson, MacLean, Foster.                                 
                                                                               
       OPPOSED:       Brown, Navarre, Hoffman.                                 
                                                                               
  Representative Grussendorf was not present for the vote.                     
                                                                               
  The MOTION PASSED, (7-3).                                                    
                                                                               
  Representative Parnell  WITHDREW CORR  #2.   There being  NO                 
  OBJECTION, it was so ordered.                                                
                                                                               
  Co-Chair  Larson  MOVED  CORR  #3.    Representative  Barnes                 
  explained the amendment would change  the funding source for                 
  mental health services in community residential centers from                 
  inter-agency receipts  to direct  funding.   There being  NO                 
  OBJECTION, it was so ordered.                                                
                                                                               
  Representative  Brown MOVED CORR  #4.   Representative Ulmer                 
  explained  the amendment  would bring  the Southeast  Region                 
                                                                               
                               16                                              
                                                                               
                                                                               
  Probation  Office  back  up   to  the  Governor's   request.                 
  Probation  officers  have  been  significantly  understaffed                 
  during the past few years.                                                   
  Representative Barnes noted her opposition to the amendment.                 
  Commissioner Rupp replied, current case load is 50% over the                 
  capacity of the Department.  Co-Chair Larson OBJECTED.                       
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Foster,  Hanley,  Parnell,   Therriault,                 
                      MacLean, Larson.                                         
                                                                               
       OPPOSED:       Grussendorf, Hoffman, Navarre, Brown.                    
                                                                               
  Representative Martin was not present for the vote.                          
                                                                               
  The MOTION FAILED, (4-6).                                                    
                                                                               
  Representative Brown  MOVED CORR  #5.   Representative Ulmer                 
  explained  that  the  Correctional  Industries  unit  cannot                 
  absorb  such  a  large  vacancy factor.    Not  funding this                 
  amendment will  mean ten  layoffs during  FY 94.   All  non-                 
  personal  expenses  of   this  unit  are  met   through  the                 
  Correctional Industries Product Fund.  Funding the personnel                 
  costs  would  be  a  small  price  to pay  for  the  return.                 
  Representative Brown pointed out that this is the Governor's                 
  request for an  increase, resulting from lawsuit  demands to                 
  address  educational  opportunities  in  our current  prison                 
  system.   Representative Barnes  objected.  Co-Chair  Larson                 
  OBJECTED.                                                                    
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Grussendorf, Hoffman, Navarre, Brown.                    
                                                                               
       OPPOSED:       Hanley,  Parnell,   Therriault,  Foster,                 
                      Larson, MacLean.                                         
                                                                               
  Representative Martin was not present for the vote.                          
                                                                               
  The MOTION FAILED, (4-6).                                                    
                                                                               
  Representative  Brown  WITHDREW  CORR #6.    There  being NO                 
  OBJECTION, it was so ordered.                                                
                                                                               
  Representative  Brown   MOVED  CORR   #7.     Representative                 
  Therriault  OBJECTED.    Representative  Brown  stated   the                 
  amendment  would  allow DOC  to  function adequately  adding                 
  given that they  have been  hit hard  in the past.   If  the                 
  Department is to be  expected to improve in management,  the                 
  Division  must be adequately  staffed.  Representative Ulmer                 
  elaborated  that  given   the  proposed  cuts  to   DOC  the                 
                                                                               
                               17                                              
                                                                               
                                                                               
  Department will be required to do much more paper work, time                 
  and  energy.   She  thought it  was  criminal to  reduce the                 
  administrative staff at  the same  time as severely  cutting                 
  the   Department.      Representative   Grussendorf   echoed                 
  Representative Ulmer's concern.  Commissioner Rupp concurred                 
  that the Department needs more adequate staffing.                            
                                                                               
  (Tape Change HFC 93-62, Side 2).                                             
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Hoffman, Navarre, Brown, Grussendorf.                    
                                                                               
       OPPOSED:       Martin,  Parnell,   Therriault,  Foster,                 
  MacLean,                 Larson.                                             
                                                                               
  Representative Hanley was not present for the vote.                          
                                                                               
  The MOTION FAILED, (4-6).                                                    
                                                                               
  Representative Brown MOVED  CORR #8.   Representative  Ulmer                 
  stated the  amendment would restore the Correctional Academy                 
  to the level of  funding requested by the Governor  and will                 
  allow   the  Department   to   comply   with  the   training                 
  requirements of  the Alaska Police  Standards and Department                 
  regulations.   Commissioner  Rupp commented,  the budget  is                 
  inadequate to properly  train the officers.   Representative                 
  Barnes  was  willing  to  reconsider  adding  $100  thousand                 
  dollars above FY 93 funding.   Representative Brown MOVED TO                 
  AMEND CORR #8 to  have a total restoration of  $100 thousand                 
  dollars.  Representative Navarre OBJECTED.                                   
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Hoffman,  Martin,  Navarre,  Therriault,                 
                      Brown, Foster, Larson.                                   
                                                                               
       OPPOSED:       Navarre, Grussendorf, MacLean.                           
                                                                               
  Representative Hanley was not present for the vote.                          
                                                                               
  The MOTION PASSED, (7-3).                                                    
                                                                               
  There was NO OBJECTION, to the amended amendment CORR #8, it                 
  was so ordered.                                                              
                                                                               
  Representative Brown  MOVED CORR  #9.   Representative Ulmer                 
  stated that if the one  position in the Department  assigned                 
  to deal with women's needs is  eliminated, the court and the                 
  inmates will construe that as a  sign that the Department is                 
  going  back  on  its  commitment  to resolve  the  problems.                 
  Representative Brown  pointed out  that the  State is  under                 
                                                                               
                               18                                              
                                                                               
                                                                               
  obligation  under the  Cleary Lawsuit  to  equalize programs                 
  available for women.   Representative Barnes noted  that she                 
  opposed the amendment.  Co-Chair MacLean OBJECTED.                           
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Navarre, Brown, Grussendorf, Hoffman.                    
                                                                               
       OPPOSED:       Parnell,  Therriault,   Foster,  Hanley,                 
                      MacLean, Larson.                                         
                                                                               
  Representative Martin was not present for the vote.                          
                                                                               
  The MOTION FAILED, (4-6).                                                    
                                                                               
  Representative Navarre WITHDREW  CORR #10.   There being  NO                 
  OBJECTION, it was so ordered.                                                
                                                                               
  Representative Navarre MOVED CORR #11.  Representative Ulmer                 
  pointed out that the Department of Corrections downsized the                 
  Wildwood  sentenced  facility from  204  to 50  inmates last                 
  year.  Due  to severe  overcrowding conditions in  remaining                 
  institutions, they  were  forced to  begin reopening  closed                 
  beds and plan  to be back up to 204 as  soon as staffing was                 
  available.  The city of Appleton,  Minnesota built a 420 bed                 
  facility  in  1992  in hopes  of  attracting  prisoners from                 
  overcrowded facilities in  other states  in order to  create                 
  jobs  in  Minnesota.   The  facility  is still  empty.   The                 
  proposed budget will  close the  Wildwood facility and  will                 
  send the 204 prisoners to Minnesota.  Representative Parnell                 
  OBJECTED.                                                                    
                                                                               
  (Tape Change, HFC 93-63, Side 1).                                            
                                                                               
  Representative Navarre  emphasized that the  proposed budget                 
  would take economic  activity out of  the State and give  it                 
  elsewhere.                                                                   
                                                                               
  Commissioner   Rupp  commented   the  Department   has  been                 
  investigating the  possibility of  sending prisoners  out of                 
  State.   Currently, there  are 80  prisoners living  out-of-                 
  state.    Representative  Barnes  stated that  Wildwood  was                 
  downsized for extensive  renovation needs and she  felt that                 
  it  would not  be in  the interest  of the  State to  pursue                 
  upsizing Wildwood.   [Attachment  #3].   Discussion followed                 
  between  Representative  Barnes  and Representative  Navarre                 
  regarding keeping the prison at Wildwood open versus sending                 
  them to Appleton, Minnesota.  Representative Navarre did not                 
  believe  that Appleton  would be able  to house  the Alaskan                 
  prisoners for $45/day.                                                       
                                                                               
                                                                               
                               19                                              
                                                                               
                                                                               
  Commissioner Rupp  clarified that  Wildwood and the  out-of-                 
  state shipment  are two  separate issues.   The  master plan                 
  developed by the State over the  past two years explains the                 
  need for 500  new beds in  Alaska by 1996.   Wildwood is  an                 
  essential  area  needed by  the  State to  meet correctional                 
  needs.    Representative  Ulmer pointed  out  that  with the                 
  proposed  changes,  the State  will  be buying  a  "bunch of                 
  lawsuits".  [Attachment #4].                                                 
                                                                               
  Representative  Brown  recommended  transferring money  from                 
  out-of-state contractual into  Wildwood in order to  keep it                 
  open.  She added, the  budget structure adopted will  hinder                 
  the Department's ability to work prison management and avoid                 
  building  a  new  prison.    Representative Brown  MOVED  to                 
  transfer  $3 million  dollars from  out-of-state contractual                 
  into  Wildwood.   The  amended  cost  of CORR  #11  would be                 
  $1,970.8 million dollars.                                                    
                                                                               
  (Tape Change, HFC 93-63, Side 2).                                            
                                                                               
  Representative Barnes stated her opposition  to the proposed                 
  amendment.   Representative Navarre  provided the  Committee                 
  with a memo from  Representative Ulmer to the HFC  Co-Chairs                 
  regarding  the Wildwood  Correctional Center  dated 3/21/93.                 
  [Attachment #5].                                                             
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Navarre, Brown, Grussendorf, Hoffman.                    
                                                                               
       OPPOSED:       Parnell,  Therriault,  Hanley,   Martin,                 
                      Larson, MacLean.                                         
                                                                               
  Representative Foster was not present for the vote.                          
                                                                               
  The MOTION FAILED, (4-6).                                                    
                                                                               
  A roll call was taken on the MOTION to adopt CORR #11.                       
                                                                               
       IN FAVOR:      Brown, Grussendorf, Hoffman, Navarre.                    
                                                                               
       OPPOSED:       Parnell,  Therriault,   Hanley,  Martin,                 
                      MacLean, Larson.                                         
                                                                               
  Representative Foster was not present for the vote.                          
                                                                               
  The MOTION FAILED, (4-6).                                                    
                                                                               
  Representative Navarre WITHDREW  CORR #12.   There being  NO                 
  OBJECTION, it was so ordered.  [Attachment #6].                              
                                                                               
  Representative Navarre asked  for notice of  reconsideration                 
                                                                               
                               20                                              
                                                                               
                                                                               
  of all the amendments which failed the DOC budget.                           
                                                                               
  DEPARTMENT OF NATURAL RESOURCES                                              
                                                                               
  Co-Chair Larson introduced  DNR #1 which would  provide $100                 
  thousand  dollars  for  nursery  operations.   He  asked  to                 
  withdraw the second and third section of the amendment for a                 
  total  of  $100  thousand  dollars  and requested  that  the                 
  amendment be HELD open for further investigative work.                       
                                                                               
  Representative  Navarre   MOVED  DNR  #2.     Representative                 
  Therriault OBJECTED.  Representative Navarre pointed out the                 
  Office  was  traditionally funded  by  interagency receipts.                 
  The   funds   were  switched   to   general   funds  without                 
  corresponding general  fund reductions to the agency budgets                 
  which had been the original source of funding.  The proposal                 
  would return the budget to the prior year format.                            
                                                                               
  NICO BUS,  CHIEF, FINANCIAL SERVICES, DEPARTMENT  OF NATURAL                 
  RESOURCES, noted that the DNR  Public Information Center was                 
  created  in  February,  1992,  there  was funding  in  three                 
  different divisions.   In FY 93, the  Department proposed to                 
  have the function funded as it was a very important function                 
  in processing permits.  He stated  that it was the intention                 
  of the Department to fund it through program receipts.                       
                                                                               
  Representative Therriault pointed  out that the Commissioner                 
  of   DNR   recommended  that   DNR   #2  not   be  approved.                 
  Representative Navarre WITHDREW THE MOTION.   There being NO                 
  OBJECTION, it was so ordered.                                                
                                                                               
  Representative Brown  MOVED DNR  #3 stating  the move  would                 
  restore a  pass-through grant  to Challenge  Alaska who  had                 
  received  the grant  since 1985.   Representative Therriault                 
  stated  that  the  subcommittee  recommended  deleting   the                 
  request stating  it was  not justified.   He encouraged  the                 
  Committee   to   fund   it   through  discretionary   funds.                 
  Representative Hanley requested that DNR  #3 be HELD.  There                 
  being NO OBJECTION, it was so ordered.                                       
                                                                               
  Representative  Brown  MOVED  DNR  #4  and  asked  that  the                 
  amendment  be  restored  to  CED  #5.     The  Oil  and  Gas                 
  Conservation Commission performs critical functions for that                 
  program.   It is  important that  professional expertise  be                 
  maintained within the agency so that it can fully comprehend                 
  and understand what the oil industry is doing.                               
                                                                               
  Representative  Hanley  recommended   when  switches   occur                 
  between the departments, it would be essential to have  both                 
  departments present to  testify.   He asked that  DNR #4  be                 
  HELD open.  There being NO OBJECTION, it was so ordered.                     
                                                                               
                                                                               
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  Representative  Brown  stated  that  DNR  #5  would  have  a                 
  corresponding  amendment  to CED  #4  and would  address the                 
  information  resource management  project.   She offered  to                 
  HOLD DNR  #5 until DCED was present to testify.  There being                 
  NO OBJECTION, it was so ordered.                                             
                                                                               
  (Tape Change, HFC 93-64, Side 1).                                            
                                                                               
  Representative Brown MOVED  DNR #6  which would restore  the                 
  mining    reclamation    program    for    private    lands.                 
  Representative Therriault OBJECTED.   Representative Parnell                 
  MOVED TO AMEND DNR  #6 request to $40 thousand  general fund                 
  dollars.  Representative Larson OBJECTED.                                    
                                                                               
  A roll call was taken on the amended MOTION.                                 
                                                                               
       IN FAVOR:      Therriault, Brown,  Grussendorf, Hanley,                 
                      Hoffman, Navarre, Parnell, MacLean.                      
                                                                               
       OPPOSED:       Martin, Larson.                                          
                                                                               
  Representative Foster was not present for the vote.                          
                                                                               
  The MOTION PASSED, (8-2).                                                    
                                                                               
  Representative Brown  MOVED DNR  #7 to  restore funding  for                 
  Alaska Hydrological Survey  Section, dam safety,  Water Data                 
  Collection  program,  and  Alaska   Water  Resources  Board.                 
  Representative Therriault  OBJECTED  stating  that  the  dam                 
  safety would  not be  impacted by  the decrement.   Mr.  Bus                 
  stated the  impact of the reduction would  affect the Alaska                 
  Water   Resources   Board   and   would   come   from    the                 
  hydroelectrical  survey which  provides  data  on many  very                 
  important  functions.    Dam  safety  is  not  part  of  the                 
  reduction.                                                                   
                                                                               
  RIC DAVIDGE,  DIRECTOR,  DIVISION OF  WATER,  DEPARTMENT  OF                 
  NATURAL RESOURCES, stated  that dam  safety consists of  one                 
  engineer  which   will  not  be   reduced,  although  eleven                 
  scientist would be eliminated.                                               
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Brown, Grussendorf, Navarre.                             
                                                                               
       OPPOSED:       Hanley,   Hoffman,   Martin,    Parnell,                 
                      Therriault, Larson, MacLean.                             
                                                                               
  Representative Foster was not present for the vote.                          
                                                                               
  The MOTION FAILED, (3-10).                                                   
                                                                               
                                                                               
                               22                                              
                                                                               
                                                                               
  Representative Therriault MOVED DNR  #8 which would  provide                 
  $75 thousand dollars  for State Fair allocations.   Co-Chair                 
  MacLean inquired the previous amount allocated to individual                 
  areas  for  State  fairs.    DNR  #8 was  HELD  for  further                 
  consideration.                                                               
                                                                               
  Representative Navarre MOVED DNR #9 which would restore cuts                 
  to   the   Agricultural   Development   for   State   Fairs.                 
  Representative  Martin  OBJECTED.    Representative  Navarre                 
  noted the  requested amendment would provide  the Governor's                 
  recommended funding.                                                         
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Grussendorf,  Hoffman,  Navarre,  Brown,                 
                      MacLean.                                                 
                                                                               
       OPPOSED:       Hanley,  Martin,   Parnell,  Therriault,                 
                      Larson.                                                  
                                                                               
  Representative Foster was not present for the vote.                          
                                                                               
  The MOTION FAILED, (5-5).                                                    
                                                                               
  Representative Navarre MOVED DNR #10 for Representative John                 
  Davies.                                                                      
                                                                               
  RAGA ELIM, SPECIAL  ASSISTANT, OFFICE  OF THE  COMMISSIONER,                 
  DEPARTMENT OF NATURAL  RESOURCES, pointed  out that DNR  #10                 
  would provide important funding in  order to make good  land                 
  management decisions.   Currently,  there are  resources not                 
  being   developed    resulting   from   lack    of   access.                 
  Representative Therriault OBJECTED.                                          
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Grussendorf, Navarre, Brown.                             
                                                                               
       OPPOSED:       Hanley,   Hoffman,    Martin,   Parnell,                 
                      Therriault, Larson, MacLean.                             
                                                                               
  Representative Foster was not present for the vote.                          
                                                                               
  The MOTION FAILED, (3-7).                                                    
                                                                               
  Representative  Brown  asked  to HOLD  DNR  #11  which would                 
  restore  funding  for   oil  and  gas  lease   programs  for                 
  development.  There being NO OBJECTION, it was so ordered.                   
                                                                               
  Representative Brown MOVED DNR #12 would deny the Governor's                 
  FY 94 decrement  to the assertion of  RS 2477 right-of-ways.                 
  Representative Therriault  OBJECTED.   Mr Bus  explained the                 
                                                                               
                               23                                              
                                                                               
                                                                               
  confusion regarding the  reduction.  The reduction  of $97.4                 
  was for the  standards for  right-a-way for individuals  and                 
  not for the federal  right-a-ways.  This was a  reduction to                 
  the Division  of Land.   Representative  Brown WITHDREW  DNR                 
                                                                               
  Representative Navarre MOVED  DNR #13, $50 thousand  dollars                 
  ARLF to start up a program  to develop and market virus-free                 
  potatoes.  Co-Chair  Larson pointed out that the  ARLF would                 
  not be an appropriate  funding source for the request.   DNR                 
                                                                               
  Representative Brown MOVED  DNR #14  which would delete  the                 
  5.3% increment of $81.6 thousand dollars to the Agricultural                 
  Development   component  in   the   Department  of   Natural                 
  Resources.  The purpose of the  amendment would be to delete                 
  the remaining increment and maintain the component at the FY                 
  93  funding  level.   Mr. Bus  noted  the importance  of the                 
  funding increment.                                                           
                                                                               
  (Tape Change, HFC 93-64, Side 2).                                            
                                                                               
  Representative  Therriault  OBJECTED.   Representative Brown                 
  pointed  out  that  there  is  an additional  $100  thousand                 
  dollars included  in the  capital budget  to accomplish  the                 
  same concern.                                                                
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Navarre, Brown.                                          
                                                                               
       OPPOSED:       Hanley,   Hoffman,    Martin,   Parnell,                 
                      Therriault,     Foster,     Grussendorf,                 
                      MacLean, Larson.                                         
                                                                               
  The MOTION FAILED, (2-9).                                                    
                                                                               
  Representative  Brown  MOVED  DNR  -  A  -  Intent  Language                 
  allowing  the  Department  of  Natural  Resources  to  fully                 
  implement  the  Mining  Reclamation   Act.    Representative                 
  Therriault stated that the intent was offered when there was                 
  no program receipt authority.  Representative Brown WITHDREW                 
  THE MOTION.  There being NO OBJECTION, it was so ordered.                    
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 6:40 P.M.                                           
                                                                               
                                                                               
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